WPP To Pay Sorrell Bonus -- WSJ
March 15 2019 - 3:02AM
Dow Jones News
By Nick Kostov
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 15, 2019).
WPP PLC said it would pay its former Chief Executive Martin
Sorrell shares worth more than 2 million pounds, or $2.65 million,
as part of his long-term bonus, despite having threatened to
withhold the payment following his departure from the firm.
The decline of WPP's shares over the past two years left Mr.
Sorrell with about a third of the maximum payment granted under the
company's long-term bonus program. An independent legal review
commissioned by the company's board found there was no basis for
withholding the payment, a person familiar with the matter
said.
The decision to pay Mr. Sorrell marks a potential detente in the
feud between the high-profile ad executive and the company he
founded decades ago, building it into an advertising behemoth. The
dispute erupted after the company launched an internal probe into
an allegation of personal misconduct that Mr. Sorrell denied.
Mr. Sorrell resigned from WPP and quickly founded a rival,
albeit smaller, ad firm, which outbid WPP for MediaMonks, a Dutch
digital-production shop. Mr. Sorrell touted the move as the first
step in his plans to build a "new era, new age" marketing group
focused on data, technology and content creation.
WPP's lawyers wrote to Mr. Sorrell's lawyers in July to warn him
that he was "likely to be in breach of his confidentiality
undertakings" over his pursuit of MediaMonks, The Wall Street
Journal reported at the time. The letter stated that Mr. Sorrell
could lose share awards worth millions of pounds that were part of
his long-term incentive program with WPP.
In January, The Wall Street Journal reported that WPP contacted
Mr. Sorrell late last year, seeking repayment for what it
determined to be personal expenses, including travel for his spouse
and items for his apartment in New York's Gramercy Park
neighborhood. Mr. Sorrell paid the company back.
WPP has since asked for further sums which Mr. Sorrell has also
reimbursed, according to a person familiar with the matter.
Mr. Sorrell's pay at WPP was a source of controversy for years.
He received 48.1 million pounds ($63.76 million) in 2016, and
$93.32 million in 2015, largely as a result of the company's
previous long-term incentive plan.
WPP said Mr Sorrell would be entitled to receive approximately
250,000 shares under its incentive plan for the period between 2014
and 2018, as well as dividends associated with the shares. He will
continue to be paid under the plan for three more years.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
March 15, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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